Washington Senate Democrats Pass Tax Rebate Bill

OLYMPIA (AP) — The Washington state Senate has passed a measure that clears the way for a state tax rebate.

The measure would allow families who qualify for a federal tax rebate program called the Earned Income Tax Credit to apply for a state refund as well.

Under the Democrats’ plan, the state would match five percent or 10 percent of the money returned under the federal rebate.

For example, if a family is refunded $1,500 from the federal government, the state would send the family $150 under the 10 percent cap.

Democrats estimate the program could cost as much as $60 million a year.

But a gloomy state revenue forecast prompted Democrats to amend the bill, adding a clause that allows the state to suspend the program during bad financial times.

The bill passed Tuesday night now goes to the House.